Urban and peri-urban dairy production systems play significant role in Ethiopia's dairy production, meeting urban consumers' dairy demands and supporting rural livelihoods. Rapid urbanization has increased the demand for dairy products, making these systems essential in the dairy supply chain. Typically involving small-scale dairy farms near urban centers, they ensure efficient transportation and distribution of fresh milk and dairy products. However, these systems face significant challenges, including limited access to land, water, and feed resources, inadequate infrastructure, and poor veterinary services, all of which hinder productivity and profitability. Despite these challenges, opportunities exist to enhance the sustainability and resilience of these systems. Innovations in dairy farming, such as improved breeds, better feed management, and disease control measures, can boost productivity and profitability while reducing environmental impacts. Strengthening institutional support, promoting public-private partnerships, and investing in infrastructure can create an enabling environment for growth. Addressing these challenges and leveraging opportunities is vital for the sustainability and resilience of urban and peri-urban dairy systems, contributing to Ethiopia's food security and economic development. Comprehensive strategies and policies are needed to prioritize the needs of urban consumers and rural dairy farmers, fostering sustainable development in the dairy sector.

Keywords: urban, peri urban, Dairy, production